Lorik Simonyan
Vegetable production in hothouse
Lusadzor village, Tavush marz

Project Summary

Business history and work experience

I have worked in the agricultural sphere for many years. I had a small hothouse with the 15 m of weight and 4 m of height. In 2009 I build bigger one with the dimensions of 30 m x 6 m. Parallel of the agricultural sphere I work as an electric.
Description of Business Idea
I am going to produce vegetables: tomato, cucumber, and different kinds of garden-stuff in my hothouse.

Market Analysis and market share

The main part of vegetables in Tavush’s market is imported from the Arartyan’s flat land where mainly the hothouses are situated in Armenia.
As Ijevan region has all of necessary conditions for production hothouse products this year 13 hothouses were built there.
During a winter there are about 200-250 celebrations and parties in families of Ijevan region. During a party / celebration there is following usage of vegetables: tomato – 10 kg, cucumber - 8 kg and greenery – 10 packets.
The big part of the families buys about 2-3 kg tomato, 2 kg cucumber in January when New Year’s celebrations take place.
The restaurants in Ijevan region monthly use 50- 60 kg tomato, 40 -45 kg cucumber and about 25 packets of greenery.
During a year there are about 700 celebrations and parties (200 of them in winter) in families of Tavush marz. During a party / celebration there is following usage of vegetables: tomato – 10 kg, cucumber - 8 kg and garden-stuff – 10 packets.
The big part of the families buys about 2-3 kg tomato, 2 kg cucumber in January when New Year’s celebrations take place.
The restaurants in Ijevan region monthly use 50- 60 kg tomato, 40 -45 kg cucumber and about 25 packets of greenery.
The total demand of vegetables are presented billow.
Vegetable kg AMD
Tomato 17.825 1.604.2500
Cucumber 22.825 17.612.375
A Pepper 24.790 7.437.000
A packet of greenery 13.400 2.680.000

In summer the demand for the vegetables are very big and it is not necessary to calculate it. Bellow it is presented the prices for vegetables in the market.
Vegetable Summer /AMD Winter /AMD
Tomato 150-200 800-1000
Cucumber 100-120 700- 800
A Pepper 50 300
A packet of greenery 100-150 200-250

The market share for my production is 5-6%. The selling process will be organized in two ways
1. I will dispatch the products to restaurants in Ijevan region
2. I will sell the production to local resellers in Ijevan region
The self coast for
• 1 kg tomato is 347 AMD
• 1 kg cucumber is 188 AMD
• a paper 84 AMD
• a packet of greenery 60 AMD

The selling price for:
Vegetable Summer /AMD Winter /AMD
1 kg tomato 100 800-1000
1 kg cucumber 100 600-800
a pepper 20-30 300-400
a packet of greenery 100 200

Competition Analysis

The production of hothouse products is a new business for our reign. This year 12 hothouses were built in Lusadzor village and there is a hothouse in Sarigyux village. The competition between local producers is not big because for satisfying the local demand for vegetables about 50 big hothouses are needed.
One of my advantages is that I am near to customers which alows me not do big transportanion costs and my product is fresher thant the imported product.

Project Financial Analysis

Project Costs: 
4,571,000
Total Equity: 
3,451,000
Requested Amount: 
1.120.000
Profit : 
3.974.900
Profitability of Equity: 
115%
New employees: 
3

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